Pequot Capital Management's Pequot Credit Opportunities Fund was hit with sizable redemptions at the end of January, as investors, including funds of funds, became impatient with middling returns.
As of January 31, the strategy was running $263 million. That's down from more than $400 million last year, according to an investor.
The strategy, recently more bearish than not, has turned in small gains each year since its May 2003 inception. Through January 2006, the strategy has reported monthly gains 76% of the time (or 25 out of 33 months), according to fund documents. That performance beats the Lehman Brothers